Is it cheaper to live in Ann Arbor or Cambridge?

Ann Arbor, MI is cheaper. Its monthly baseline of $1,630 (1BR rent + utilities) runs about 42% below Cambridge, MA's $2,810, mainly because of rent.

How much more do you need to earn to live in Ann Arbor than in Cambridge?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $100,000 in Cambridge.

Which has lower taxes, Ann Arbor or Cambridge?

Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Cambridge under Massachusetts's (a top state income tax rate of 9.00% and a 6.25% state sales tax).

Ann Arbor vs Cambridge Cost of Living 2026

Ann Arbor

Michigan

$1,630/mo est.

Cambridge

Massachusetts

$2,810/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,630 in Ann Arbor, MI versus $2,810 in Cambridge, MA. Overall, Ann Arbor, MI is roughly 42% cheaper to live in day-to-day than Cambridge, MA, driven mainly by rent.

Median household income is $81,089 in Ann Arbor, MI and $126,469 in Cambridge, MA — about 36% higher in Cambridge, MA. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Massachusetts has a top state income tax rate of 9.00% and a 6.25% state sales tax.

Ann Arbor, MI

Cambridge, MA

Rent

Studio

$1,274

$2,236

+76% in Cambridge, MA

1 Bedroom

$1,389

$2,496

+80% in Cambridge, MA

2 Bedroom

$1,692

$2,980

+76% in Cambridge, MA

3 Bedroom

$1,812

$3,325

+83% in Cambridge, MA

Buying a Home

Median Home Value

$435,100

$1,040,500

+139% in Cambridge, MA

Income

Median Household Income

$81,089

$126,469

+56% in Cambridge, MA

Metro Median Wage (annual)

$55,380

$66,620

+20% in Cambridge, MA

People & Lifestyle

Median Age

27.7 yr

30.5 yr

+2.8 yr in Cambridge, MA

Homeownership

45.6%

33.7%

+11.9 pp in Ann Arbor, MI

Bachelor's+ (25+)

77.7%

80.2%

+2.5 pp in Cambridge, MA

Avg Commute

19.9 min

26.1 min

+6.2 min in Cambridge, MA

Crime (per 100k/yr)

Violent Crime

311

436.7

+40% in Cambridge, MA

Property Crime

1,744.5

2,657.6

+52% in Cambridge, MA

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

47.7°F

51.5°F

+3.8°F in Cambridge, MA

Annual Precipitation

32.8 in

43.8 in

+11.0 in in Cambridge, MA

Gas

Regular Gasoline

$3.85/gal

$4.07/gal

+6% in Cambridge, MA

Area: Midwest (PADD 2) vs Massachusetts.

Utilities

Electricity (¢/kWh)

23.0

29.6

+29% in Cambridge, MA

Natural Gas ($/MCF)

$19.72

$30.66

+55% in Cambridge, MA

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.31

about equal

Bread (lb)

$1.66

$1.92

+16% in Cambridge, MA

Eggs (doz)

$3.63

$2.19

+40% in Ann Arbor, MI

Ground Beef (lb)

$6.77

$6.90

+2% in Cambridge, MA

Chicken (lb)

$2.10

$2.19

+4% in Cambridge, MA

Bananas (lb)

$0.62

$0.69

+12% in Cambridge, MA

Average prices — Midwest vs Northeast (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (MI / MA)

6.25%

+0.3 pp in MA

Income Tax (top rate)

4.25%

9.00%

+4.8 pp in MA

Ann Arbor vs Cambridge — FAQ

Is it cheaper to live in Ann Arbor or Cambridge?: Ann Arbor, MI is cheaper. Its monthly baseline of $1,630 (1BR rent + utilities) runs about 42% below Cambridge, MA's $2,810, mainly because of rent.
How much more do you need to earn to live in Ann Arbor than in Cambridge?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $100,000 in Cambridge.
Which has lower taxes, Ann Arbor or Cambridge?: Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Cambridge under Massachusetts's (a top state income tax rate of 9.00% and a 6.25% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).